Download PDF

1. Company Snapshot

1.a. Company Description

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company.It operates through three segments: Las Vegas Locals, Downtown Las Vegas, and Midwest & South.As of December 31, 2021, the company operated 28 gaming entertainment properties located in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania.


It also engages in owning and operating a travel agency.The company was founded in 1975 and is headquartered in Las Vegas, Nevada.

Show Full description

1.b. Last Insights on BYD

Boyd Gaming Corporation's recent performance was negatively impacted by weakness in its Las Vegas Locals segment and underperformance at its Orleans property. Despite a double-beat in its Q3 earnings, the market reacted negatively, with the stock dropping around 7%. The company's Midwest & South properties showed strength, but this was overshadowed by the weakness in other areas. Securian Asset Management Inc. reduced its stake in the company by 7.2% during Q2, according to its 13F filing. CIBC raised its price target on Boyd Group Services Inc. to C$270.00, maintaining an outperform rating.

1.c. Company Highlights

2. Boyd Gaming's Q3 Earnings: A Strong Performance

Boyd Gaming reported a robust third-quarter earnings, with revenue exceeding $1 billion and EBITDAR reaching $322 million. After adjusting for the recent FanDuel transaction, the company delivered revenue and EBITDAR growth, maintaining margins consistent with the prior year at 37%. The company's EPS came in at $1.72, beating analyst estimates of $1.57. The strong performance was driven by the Las Vegas Locals segment, which posted revenues of $211 million and EBITDAR of $92 million, driven by strong demand from locals customers.

Publication Date: Oct -26

📋 Highlights
  • Q3 Revenue & EBITDAR Growth: Revenue exceeded $1 billion, EBITDAR reached $322 million, with adjusted growth maintaining 37% margins.
  • Las Vegas Locals Performance: Generated $211 million revenue and $92 million EBITDAR, driven by strong local demand despite destination business declines.
  • Midwest & South Growth: Achieved 3% revenue growth to $539 million and over 2% EBITDAR growth, marking strongest 3Q performance in 3 years.
  • Capital Allocation & Shareholder Returns: $146 million in capex and $637 million returned to shareholders ($160M stock buybacks + $15M dividends) in Q3.
  • Online Segment Outlook: Raised 2024 EBITDAR guidance to $60 million and expects ~$30 million in 2026, reflecting digital expansion progress.

Segment Performance

The Midwest and South segment achieved its strongest third-quarter revenue and EBITDAR performance in 3 years, with revenues rising 3% to $539 million and EBITDAR growing over 2%. The company's Online segment also saw an increase in guidance, with EBITDAR expected to reach $60 million for the year and approximately $30 million in 2026. As the company noted, "the Midwest and South regions, results were solid, with broad-based growth across 17 properties."

Capital Allocation and Shareholder Returns

Boyd Gaming invested $146 million in capital during the quarter, with total capital expenditures expected to be approximately $600 million for the year. The company also returned a total of $637 million to shareholders this year, through share repurchases and dividends. The company intends to maintain a pace of $150 million per quarter in share repurchases, supplemented by its recurring dividend.

Valuation and Leverage

With a P/E Ratio of 11.5 and EV/EBITDA of 8.46, the company's valuation appears reasonable. The company's leverage, which was 2.8x before the FanDuel transaction, is currently around 1.5x and is expected to tick up to around 2.5x over the next 1.5 years due to capital plans. The company's Net Debt / EBITDA ratio stands at 3.25, indicating a manageable debt burden.

Outlook and Growth Prospects

The company is optimistic about its growth prospects, particularly in the Missouri market, where it has a partnership with Fanatics and both of its properties received licenses to offer sports betting. The company's internal bookings are also showing a positive trend, with bookings for the next 90 days looking better than they did a few months ago. Analysts estimate next year's revenue growth at -3.0%, but the company's strong performance and growth prospects suggest that it may be able to mitigate this decline.

3. NewsRoom

Card image cap

BOYD GAMING ANNOUNCES QUARTERLY DIVIDEND

Dec -04

Source: prnewswire.com

Card image cap

Ameritas Investment Partners Inc. Trims Holdings in Boyd Gaming Corporation $BYD

Nov -26

Source: defenseworld.net

Card image cap

American Century Companies Inc. Increases Stock Holdings in Boyd Gaming Corporation $BYD

Nov -26

Source: defenseworld.net

Card image cap

A Gambling Portfolio In A Down Cycle Could Create Short-Term Gains

Nov -19

Source: seekingalpha.com

Card image cap

Boyd Group Services Inc. (TSE:BYD) Receives Average Rating of “Buy” from Brokerages

Nov -19

Source: defenseworld.net

Card image cap

This Fund Sold $39 Million of Boyd Gaming Stock While Exiting MGM and Downsizing United Parks Bets

Nov -16

Source: fool.com

Card image cap

Flutter Entertainment Faces Pressure Despite Solid Q3 Results

Nov -13

Source: gurufocus.com

Card image cap

Boyd Group Services Inc. (BYD:CA) Q3 2025 Earnings Call Transcript

Nov -12

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.87%)

6. Segments

Midwest & South

Expected Growth: 0.8%

Midwest & South segment of Boyd Gaming Corporation, with 0.8% growth, is driven by increasing tourism in regional markets, steady gaming revenue, and strategic marketing initiatives. Additionally, the segment benefits from a loyal customer base, efficient operations, and a strong brand presence, contributing to its moderate growth.

Las Vegas Locals

Expected Growth: 0.9%

Boyd Gaming's Las Vegas Locals segment growth of 0.9% is driven by increasing visitation and gaming spend from locals, supported by a strong local economy, low unemployment, and rising consumer confidence. Additionally, Boyd's focus on enhancing the gaming experience, improving amenities, and targeted marketing efforts have contributed to the segment's growth.

Online

Expected Growth: 1.2%

Boyd Gaming Corporation's online segment growth of 1.2% is driven by increasing adoption of online gaming, strategic partnerships, and expansion into new markets. Additionally, investments in digital marketing and user experience enhancements have improved customer engagement and retention. Furthermore, the company's focus on mobile gaming has capitalized on the growing trend of mobile-first gaming, contributing to the segment's growth.

Downtown Las Vegas

Expected Growth: 0.7%

Boyd Gaming's Downtown Las Vegas segment growth of 0.7% is driven by increasing visitation and length of stay, fueled by the area's revitalization efforts, new entertainment options, and improved amenities. Additionally, the company's focus on customer loyalty programs and targeted marketing initiatives have contributed to the growth.

Managed & Other

Expected Growth: 0.9%

Boyd Gaming's Managed & Other segment growth of 0.9% is driven by increased management fees from Ameristar Casino Hotel Kansas City and Belterra Park, as well as higher revenue from its travel agency and interactive gaming businesses. Additionally, the company's focus on cost savings initiatives and operational efficiencies also contributed to the segment's growth.

7. Detailed Products

Casino Gaming

Boyd Gaming Corporation operates a wide range of casinos across the United States, offering a variety of games, including slots, table games, and poker.

Hotel Accommodations

Boyd Gaming offers luxurious hotel rooms and suites at its properties, providing guests with comfortable and convenient accommodations.

Dining and Entertainment

Boyd Gaming's properties feature a range of dining options, from fine dining to casual eateries, as well as entertainment venues, such as theaters and nightclubs.

Sports Betting

Boyd Gaming offers sports betting at its properties, allowing customers to place wagers on various sports and events.

Online Gaming

Boyd Gaming offers online gaming platforms, allowing customers to play casino games and place sports bets from the comfort of their own homes.

8. Boyd Gaming Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Boyd Gaming Corporation is medium due to the presence of alternative forms of entertainment and leisure activities.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of negotiating power and the high switching costs associated with changing gaming and entertainment providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers and the moderate level of dependence on these suppliers.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry and the attractiveness of the gaming and entertainment industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple competitors and the high level of competition in the gaming and entertainment industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 63.35%
Debt Cost 5.58%
Equity Weight 36.65%
Equity Cost 12.18%
WACC 8.00%
Leverage 172.83%

11. Quality Control: Boyd Gaming Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Boyd Gaming

A-Score: 6.3/10

Value: 6.2

Growth: 7.3

Quality: 6.6

Yield: 1.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Vail Resorts

A-Score: 5.5/10

Value: 3.7

Growth: 5.9

Quality: 5.5

Yield: 8.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Marriott Vacations Worldwide

A-Score: 5.4/10

Value: 6.7

Growth: 5.8

Quality: 5.5

Yield: 6.0

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Wynn Resorts

A-Score: 5.0/10

Value: 5.4

Growth: 5.7

Quality: 4.8

Yield: 1.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Churchill Downs

A-Score: 4.5/10

Value: 4.3

Growth: 8.9

Quality: 5.5

Yield: 0.0

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
MGM Resorts

A-Score: 3.9/10

Value: 4.4

Growth: 7.7

Quality: 2.4

Yield: 0.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

81.24$

Current Price

81.24$

Potential

-0.00%

Expected Cash-Flows